History of San Francisco - 2000s

2000s

In 2001, the markets crashed, the boom ended, and many left San Francisco. South of Market, where many dot-com companies were located, had been bustling and crowded with few vacancies, but by 2002 was a virtual wasteland of empty offices and for-rent signs. Much of the boom was blamed for the city's "fastest shrinking population", reducing the city's population by 30,000 in just a few years. While the bust has helped put an ease on the city's apartment rents, the city remains expensive. By 2003, the city's economy had recovered from the dot-com crash thanks to a resurgent international tourist industry and the Web 2.0 boom that saw the creation of many new internet and software start-up companies in the city, attracting white-collar workers to recent University graduate young adults from all over the world. Residential demand as well as rents rose again, and as a result of such demand, city officials relaxed building height restrictions and zoning codes to construct residential condominiums in SOMA such as One Rincon Hill, 300 Spear Street, and Millennium Tower, although the late 2000s recession has indefinitely halted many construction projects such as Rincon Hill. Part of this development is the reconstruction of the Transbay Terminal Replacement Project.